way. i'm jim kramer, see you tomorrow? >> if we can't fight the war in afghanistan properly, we should get out more. this is "the kudlow report". mitt romn mitt romney defends his committ comments. romney's completely different vision is create free enter price society policy. more people working and more

entrepreneurship. romney continues to defend that position. we are going to talk to the senior advisor to the campaign and we'll argue status entitlement versus free market opportunity. and an audio tape allegedly surfaces of barack obama saying he believes in redistribution. but that is no secrecresecret. and we will go live to libya. this is about a failed obama foreign policy. first up, breaking news chicago teachers suspend strike classes are scheduled to resume tomorrow.

rahama, thank you. >> moments ago after seven days on strike. chicago teachers voted with an 98% to 2% to suspend their walkout and go back to work. in the nation's largest school district. some of the major issues include a 7% salary are increase over three years. based on students standardized test scores and principles retain hiring power. half of all new hires must be laid off teachers. 800 teachers delegates voted with an overwhelming majority suspending this strike.

essential allly this walkout isr and teachers will return to the classroom tomorrow. >> 7% wage increase, is that right over three years? >> that is what i said. >> and secondly, is there anything we can report on the teacher's performance ratings issue which was such a roadblock to this whole deal? >> it was a lot of back and forth. they did not want so much of their valuations to be based on student's test scores. but it will now be 30% on this three-year contract. the city was looking for upwards of 40% and some were saying it might go up to 50%. but the teacher s got some of what it wanted and the city got some of what it wanted. >> thank you we appreciate it.

>> now to today's other big story. the romney campaign, the gop nominee made at a private mund razois race fundraiser. >> take a listen to mr. trump. i don't think he should apologize. but he should not be apologizing. so just what will the political fall out of this gaff if any. let's go to robert costa of the national review. >> this is a big story of mitt romney. they see this as a one-week

story. maybe a 24-hour story. they believe that they can get beyond this shiny object they can win this election. >> it was taken only months ago. and it was filtered again. >> can mitt romney come back to the economy? that is what his campaign was focused on today. getting back to the mufundaments of whether or not they think he is strong. i'm going to share with senior adviser ed gillespie. former clinton white house aid,

keith boynten. thanks. ed klein, do you think that romney ought to apologize? do you think he was wrong the way he went through the 47%? >> i think he shouldn't complain. i think he has to move beyond this. look, i would like to see mitt romney president of the united states. i would also like to see mitt romney reach out to these people these 47% that he's been talking about. whom he disparaged in these remarks and make it plain that these policies are in their benefit. that by creating more

incentives. by moving the country away from it's dependdency -- >> wait, we are going to come back. give everybody an opportunity. reach out for everybody. what is your take? >> you call this a dirty trick. using somebody else's own words is a dirty trick. >> they have had it since last may. that is the thing. and now the other side by the way is going to use another dirty trick because they have this type of obama saying i'm a redistributionist. >> those are his own words. he said it. don't deknny it. if robert costa is right. that means he hasn't had a good week since may. >> he may be in trouble but polls have romney neck in neck,

a deed even race with obama. what is your take? >> my take is on the video, this was a chance to refocus the campaign on the right issue whose got the program that is going to build the economy and create jobs and growth not just at the top but for everybody. coming through loud and clear. he has a program to grow the economy and it is going to mean more jobs for everybody. everyone today that would rather be off and having a job. earlier today i spoke with romney's senior advisor ed gillespie just what romney was thinking when he made these comments listen to what he told

me. >> he was asked a question about what is your path to winning. he gets asked that question a lot. this answer was, he starts with 47% of the vote. i start with the same. that is the nature of today. we are going to have to fight over the 6% are undecided. then he went onto say that he has to persuade those voters in the middle to support his agenda because a lot of the people who support obama don't pay federal income tax. a tax cut is not going to resonate strongly with people. that is not going to be as resonate with people who rely on government spending and the fact is the bigger issue here is how do we get more people into jobs

and off of government programs that is how we should measure success in this country. it is not a success when you have 15 million people on food stamps under president obama's administration. >> what about people who don't pay income tax because they get a child tax credit or earned income tax credit. people are asking is governor romney going to change that? they may pay payroll taxes are you going to mess with the tax cred credit? >> governor romney is not going to raise the taxes on anyone. people have higher incomes and more jobs. that would create more taxpayers. that is what we want to have in our economy. we want to have a growing

economy where people can be self sufficient and have and find jobs not the stagnant economy that we have under president obama. >> it is funny, my finally tuned ear. i know you many years, as you reacted to me. you didn't use the word "tax cut". mitt romney stopped talking about tax cuts. i didn't mention them in tampa. you and i were there. he didn't mention them at the chamber of commerce yesterday. he never mentioned tax cuts. paul ryan is on the campaign trail you guys don't talk about the 20% marginal rate cut for individuals anymore. and he's not taking to people i'm going to lower your tax rate and let you keep more of what you eastern and more incentives.

he is not selling his program like that. obama has a three-point lead over romney on taxes. can you imagine that? >> larry, what we are doing right now is we are talking about the romney plan for i stronger middle class. we are talking about each of those components. we are talking about the specifics of those goals. how governor romney's plan would reduce the deficit. through august of this year. the deficit is $1.2 trillion. we are going to talk about championing small business and economic growth and governor romney will be talking about the need to cut taxes. corporate tax rate as well as individual tax rates because small business owners as you

know tend to pay the individual tax rate. >> so we will hear new talk about the 20% income tax reduction as you say affects small business. eddy, i haven't heard it for so long that i have forgotten it is in the campaign documents. >> they are talking more about the specifics under lined each of the five parts of the plan for a stock erstronger middle c one of those is championing small business. so you will hear more about it next week. >> we'll leave it there. ed gillespie, thank you ed. i appreciate it very much. >> thank you for having me on. >> all right. coming up, it is all about entitlement state versus opportunity state. our power house is going to

dissect my plan. don't forget. free market capitalism is the best way to prosperity. listen as we go out. coming right back. >> well, according to labor department unemployment fell from 8.3 to 8.1% last month but that is because rather 368,000 americans gave up looking for work. president obama said the numbers will come down a bit. president obama: i'm barack obama and i approve... this message. anncr: he keeps saying it... mitt romney: this president cannot tell us that you're... better off today than when he took office. anncr: well... here's where we were in 2008...

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income taxes and votes, it doesn't calculate, i don't know why he went there and frankly he

shouldn't have dgone there. i don't like those arguments at all. there is a bigger picture here. mr. obama has expanded government dependency and politics. think of the huge increase in food stamps. social security disability has been used as a substitute for unemployment insurance. 47% of households are getting government benefits today. in the 1980s. only 40% were receiving benefits. i believe that has to be stopped. while romney mispoke, the

argument is on track. get folks more work instead of more benefits and open up more opportunity. that is what i think. i think romney was trying to say that. it is my point. i know he didn't say it and life goes on. you heard ed gillespie make the case today. now we have mitt romney acting like an amateur.

>> the liberal media says that every four days. the polls disagree. i want to ask you keith. this is the issue. you and i have talked about this. the entitlement state versus the opportunity state. >> the opportunity state is the state that president obama is trying to encourage. mitt romney's father was on welfare. paul ryan was taking stimulus money and giving it to his constituents. mitt romney should understand. most of the people who don't pay income taxes are people who live in the south.

>> there is no correlation between government benefits and income tax and voting. i want to go to jim. the issue is bigger than this. keith and i may disagree on some parts of this issue. but what romney has tried to say for a year or more is that he is trying to rebuild free enterprise. i think romney has to stay with that message.

>> there are people on benefits. what we want to do is give them an opportunity to rise out of that and give them an opportunity and take care of their families. who is going to build up the economy. romney has these tax cuts and he doesn't talk about it. he hates the debt and they don't talk about it. now they say they are going to put the pressure on.

>> there is a lack of direction. i say he is not convincing the american public that he doesn't have their interests s at hear. >> nobody knows who he is. the republicans don't know whether he is a conservative or a moderate. that is all politics. >> what is in the best interests of the american people? not just the rich people all

people. and that means that you got to build up the economy. right now the only guy that is talking about that is mitt romney. >> you can't alienate 47% of the population. >> what is important is what policies are going to help the other 47%? there is one more number and that is mitt romney job creation number. the states ranked 47th out of 50 state. >> how is that going to help mesh? america? >> where are we going ining in future. >> ed klein, it is an odd thing here but obama can't make the sell either.

xwam has a plan to get us out of this recession. if we get him out of the white house we are going to get more of the same. mitt romney does have a plan and we are he is not selling it to the american public. >> what network are we on? >> i'll have to wait and look at that poll. all i know is, keith, the best pollster in 2008 and that is scott has it even and by the way, gallup poll has it even

too. we'll look at the nbc poll as the show goes on. the polls are not always right. if you think obama has made the sale. that's gate. >> leon panetta concerned about insider attacks. he scales back in afghanistan. is the war going to end sooner there than we think? that is up next. [ female announcer ] want to spend less and retire with more?

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anti-american protests around u.s. embassy compounds continue. aman is live from beng aazi. >> reporter: and now, what is more alarming is that two of the most potent forces in the nation are trying to tap into them and you have the strong force of hez

bow hezbollah in lebanon. and that is going to be more probl problematic for the united states. in other news around here and in this part of the world, that has drawn sharp criticism from palestinian officials there. they say they could come back and fight governor romney if he is elected. he said although they understand this is part of the election process in the united states, those comments could be a problem if he is elected president. >> appreciate it. here now we have retired four-star general and retired

film maker. author of the book "obama's america". welcome back. you know, you listen to these bad actors, al qaeda, mhezbolla, this was never about a movie or movie trailer. isn't this sheer extremism in the muslim movement and running up against anti-americanism as well? >> i think you are right. it has been engineered in one form or another. certainly libya. i might add, it is interesting where this hasn't happened. saudi arabia the gulf coast states, the heart of the industry has been sqeen quiet.

it does underscore a general feeling of the muslim world. that we are insensitive to their religious themes and even with this film done by somebody with a criminal record it feel upon ears that were listening with a deadly insult. >> al qaeda, is trying to agitate tunisia, and yemen, i ask you the same question and you go to africa and you look at this in your film. right now, all i see is anti-americanism, left, right and center. that is all i see. in some ways, obama's weakness

in a desize iive way, enemy ies represents a big shift of strategy for the muslims. they come to another country and knock down buildings. their goal is to restore islam as a global power. >> picking off these individual governments, what is your take on that? >> i defer to his expertise, but

it is hard to label them. there is a diverience of libya. a civil war against the rest of them, so these countries are quite different and under different degrees of governance. our foreign policy has to take into account the needs and problems starting with the most important bar none saudi arabia and pakistan and egypt and the rest of them. >> general, i want to shift to afghanistan. american military patrols can do and various training exercises

can do in afghanistan. there was a terrorist blow up and 12 south africans were killed. what do you think? i have no expertise on the matter. but why are we doing this? >> well, i think we have a slowly evolving disaster on our hands in afghanistan. i think the president said out in 2014 and that changed reality. karzai has been a political disaster. the packs, the central republics. everybody has said how do i survive. we are doing the most dangerous of military strategies under pressure. we are 870 miles from the ocean

and u.s. navy. i think the strategy is flawed and has to be rethought. we are not going to be able to stay until 2024 with disbursed packets of american trainers and in tell and special ops. we just lost 8 u.s. marine corp jets and the commander was killed in that attack 24 hours ago. so i was glad to see general demp see stand up in public and make a strong statement. dismayed when secretary panetta said this was the last gas from the tag btaliban. >> general thinks we are going to leave early. the question i have for you is how is this going to be seen in the rest of the arab world? >> it simporn important to real

this is a disaster for obama. in 2008 he said this was the bad war but both wars have turned out to be a disaster. iraq is looking better than afghanist afghanistan. >> if the u.s. leaves, how is that going to be viewed by the gi haddists? >> it will look like the united states is a big canada that is unable to prosecute it's will. >> thank you gentleman. much obliged. coming up. chicago teachers suspend their strike. classes are scheduled to resume tomorrow. americans believe they should be in charge of their own future.

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late breaking news chicago teachers suspend their strike.

thank you very much especially on very short notice. >> not a problem. but please call me randy. >> one of the key points. >> teachers knew that there was going to be an evaluation system and they wanted there to be one, and they wanted it to be fair, and transparent and reliable. the reason for the strike was because teachers were standing up for the tools they needed to get kids the education kids

deserved. that is why parents supported it by a 2-1 margin. kids get nurses libraries and text books on time. that is why teachers are on strike. >> everybody loves teachers. i'm not sure that everybody loves the teacher's june on. the issue here was pension and benefits. medical benefits and pensions. a lot of people said that chicago teachers got too much in pensions and benefits and the money never flowed into the teachers themselves and that this thing has nearly bankrupted chicago. how does that turn out? is it is going to come back again. >> actually larry again, that is not what the issue was. they agreed to a wellness program that the mayor was, was

pushing for and what we all want to make sure teachers and kids are well and we have prevent tative care. and but again, that is not what the issue is. what the issue is, is how teachers can teach. they don't want to test their way through schooling where a quarter of the days are used for testing. and so what happened in terms of this agreement and the reason that the teachers were on strike. no one wants a strike. we wanted the tools -- >> don't you have to have some quant taytive results here? seems to me that was a big issue here. it is going to be fought out all over the country. how do you know if there aren't some measures that tell us.

14, 15% of 4th graders read in chicago? that is a horrible number. >> actually. >> how can we know if we don't have quant titive evidence? >> actually larry, nobody is disputing whether we should have quant taytive measures. in the last pisa scores the scores where we are compared to other countries. in science we have done better than in math and english. science that does not have that testing. i was in new mexico. because of the fixation on testing. kid wrz ns were not getting sci until 57bth grade. we need to make sure we are teaching. >> i would love to spend another

half hour with me. you were great to us. i appreciate it. >> thank you larry. >> coming up. breaking news. latest wall street journal poll. broiki breaking details coming right back.

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first cnbc poll since the conventions ended. good evening jackie. >> good evening to you. as you said the new poll is out. let's get to john harwood on that. john? >> we have new results from the poll and they show that after both party conventions president obama has taken a clear lead over mitt romney he leads 50-45%. there are three clear building blocks to that success. the second is progress by president obama on key issues he holds a significant lead over handling medicare and is even with mitt romney on handling the economy which is supposed to be

mitt romney's strong suit. he has had success in preframin for a choice for the future. some say they are worse off by a double digit margin. some say barack obama is better prepared to lead the country than mitt romney. >> won wall street tonight a major change on goldman sachs. david vinier a 32 year veteran at goldman will join the board. currently co head of the securities division. >> thank you very much. coming up next a warning. if obama is granted a second term. there is a regular term. [ male announcer ] when a major hospital

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president obama: i'm barack obama and i approve...

this message. anncr: he keeps saying it... mitt romney: this president cannot tell us that you're... better off today than when he took office. anncr: well... here's where we were in 2008... tv anncr: the worst financial collapse... since the great depression... tv anncr: american workers were laid off in numbers not seen... in over three decades. anncr: and here's where we are today...

thirty months of private sector job growth. creating 4.6 million new jobs. we're not there yet. but the real question is: whose plan is better for you? the president's plan asks millionaires... to pay a little more... to help invest in a strong middle class. clean energy. and cut the deficit. mitt romney's plan? a new 250,000 dollar tax break for... multi-millionaires. roll back regulations on the banks that cratered the economy. and raise taxes on the middle class. president clinton: they want to go back to the same old... policies that got us in trouble in the first place. president obama: we're not going back, we are moving forward. anncr: forward. we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more.

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